The Regulation on the Operation of the Turkish Emissions Trading System Market, prepared by Turkey's Energy Market Regulatory Authority (EPDK), was published in the Official Gazette dated October 21, 2026, and entered into force. The regulation establishes the procedures and principles governing the Turkish Emissions Trading System (TR ETS) market and the Transaction Registry System, which will be established and operated to encourage reductions in greenhouse gas emissions through a market-based mechanism.
Allowances to be traded in primary and secondary markets
Under the regulation, the primary market is defined as the market operated to distribute allowances to market participants through auctions. Secondary markets cover markets in which allowances are traded following their free allocation or sale in the primary market.
The ETS market consists of regularly operating primary and secondary markets organized and operated by the Market Operator, where allowances and/or other approved standardized contracts related to emissions trading are bought and sold.
Market transactions and allowance records to be managed electronically
According to the regulation, the ETS Market Management System (ETSPYS), operated by the Market Operator, will be used to conduct ETS market transactions.
The electronic issuance and registration of allowances, transactions by market participants and related recordkeeping processes will be carried out in accordance with the systems and rules established under the regulation.
Supplementary allowance price may apply to 2026 emissions
Under provisional Article 2 of the regulation, a supplementary allowance price may be applied to 2026 emissions if market participants request allowances equivalent to the verified greenhouse gas emissions of their respective facilities.
In this context, the Climate Change Directorate will determine the procedures for applications submitted through ETSPYS, allowance issuance and auction dates.
The regulation's provisions governing the primary market will apply to bid submissions, collateral calculations, trade confirmations, settlement, invoicing and payments.
Under the supplementary allowance price mechanism, the matching price will be the purchase bid price submitted by each market participant. No allowance reference price will be calculated in these auctions. Allowances purchased through the auctions will be transferred directly to the surrender account of the relevant facility and will not be taken into account in fulfilling compliance obligations.
Under provisional Article 1 of the regulation, a virtual implementation will be conducted through ETSPYS until the Transaction Registry System, primary market and spot allowance market become operational, without creating any delivery, invoicing or payment obligations.
